we have another fox news alert, though, because we're watching stocks around the world this morning. so fa they've tanked again as many global marketed entered official bear market territory after one of the worst days on wall street since the collapse of lehman brothers back in 2008. >> yesterday, the dow closing below 11,000 after a more than 634 point tumble. >> let's go right to jennifer davis in washington with more on the global markets and how they're responding. at one point last night,s the dow futures, the indication was down 325 points. looking over right now, it looks like it's come back all the way back to even. what are you hearing? >> clearly, just all over the world, stocks and futures, everything you can imagine is just slipping and sliding all over the place. everyone wanted to see what are the overseas markets going to do following yesterday's activity on wall street? as you mentioned, dow dropping more than 600 points, sixth biggest drop ever. reaction, clearly concern.

no question. when those asian markets opened, there were deep dives. things seriously plummeted and the nikkei was down more than 4% at one point. things kind of clawed its way back but ended up in an area where everyone said they remain incredibly concerned. european marketed did open higher but it's been up and down ever since. and at last check, there's a whole lot of down going on there and then with the u.s. futures, they are jumping around a little bit as well. they look a little optimistic earlier. now, perhaps not so much. we'll see what happens as we get closer to the opening bell. no question, people are rattled, they're concerned. not just by the s&p downgrade but by the looming european debt crisis that could get bigger and a weak global economy overall. the president came out yesterday. stocks were tumbling as he talked and he said look, the united states, i still believe has a very strong economy but i think today, everyone is going to look at the federal reserve. they are holding a regularly scheduled meeting today and people want to see if ben bernanke and the central bank will take some action to, perhaps, calm things down a bit.

>> we'll have to wait and see. jennifer davis live for us in d.c. thank you very much for that update. you read the headline at the top of the 6:00 and said they called the government back. i thought you were talking about the united states of america. you were talking about london because fire rages there after three days of riots. i thought when the president came to the microphones yesterday, he was going to call congress back and he was going to say i am calling them back to do something about our economy immediately. nope. >> you thought he was going to do that? >> thought the president had a plan? >> i did. >> everybody thought ok, when they heard the president is going to make a speech from the state dining room at 1:00, they thought ok, he's got something to say, this is going to be big. if you take a look at how the stock market reacted, you can tell exactly how much he did say. when he started, the dow was down 410 points. and 10 minutes after, it was down 323 points and 30 minutes after he spoke, it was down 605

points and the problem was he said nothing. he lectured once again and so much of it was stuff we have heard on at least seven occasions before. if you missed it, here's some highlights. >> markets will rise and fall but this is the united states of america. no matter what some agency may say, we've always been and always will be a triple a country. in fact, warren buffet who knows a thing or two about good investments said if there was a quadruple a rating, i give the united states that. it's not plans or policies that are the problem here. lack of political will in washington. i intend to present my own recommendations over the coming weeks over how we should proceed and that committee will have the administration's full cooperation and i assure you, we will stay on it until we get the

job done. friday night, the s&p downgrade of the debt started to trickle through the markets. monday morning, they were down. we were here. markets were falling apart. everybody waited to have something credible. have a plan and be a leader of what's going to happen. where are you going forward? he came up with an air ball and took a jump shot from three point land and missed the whole rim completely. >> i'm sure he doesn't think that. i'm sure the president and his advisors, well, come on, that they're supposedly running this nation. they're sitting around figuring out exactly what words he's going to say. i'm sure they're not sitting in a room and saying to each other, hey, let's go out and throw balls up in the air. >> that's what it was. >> the markets crashing. i'm agreeing with you. i'm saying from their perspective, they think that they were saying the right things for the country yesterday. a president just doesn't go out there and --

>> i'm bewildered and dumfounded. >> the number one thing is to reassure the american public yesterday. reassure the american public. and that usually includes having a plan. all i'm saying is i don't think it's a deliberate move by the president to come out and throw up an air ball. they think what they said yesterday was reassuring, the market didn't agree with them. >> we wanted somebody to be presidential. we saw a guy who went out there and was political. john paul horwitz writes today in "the new york post," he says this is the worst moment of the obama presidency bar none and to put it mildly, he isn't rising to it. >> the point -- the other -- the other part, whoever made up his schedule said maybe we shouldn't ice this next round of fund raisers. remember last thursday the dow dropped 513 points. that happened to be his birthday. happy birthday. he flew to chicago and did this

massive party fundraiser, whatever. guess what happens today, we're down 634 points. he goes to another fundraiser. >> two fundraisers last night where his message again very popular at these fundraisers where he says he inherited most of this problem and so that appears to be what the campaign message is going to be three years into his presidency. somewhere inside, they must be doing internal polling that this is working. with not only his base but with the independent voters that he potentially needs to be re-elected. >> what he really inherited from george bush was a triple a credit rating. >> thank you. >> and now, we're down to double a plus. does he really need the dough? we know he wants a billion dollars. look at all the fundraising and all the dough he's been raking in. $86 million combined. obama for america over $47 million and as you can see from the dnc, he has raised $38 million. that is in the last reporting quarter. >> all right. now, the bank stocks are the

ones that really took the hits yesterday. down 11% in total on monday. bank of america especially 20% down. citigroup off 16%. morgan stanley down 14%. so eric, i turn to you. is that -- does that signify what we faced in 2008 with lehman brothers or is it different? >> yeah, not only that, lehman brothers happened to be triple a credit rated right before it failed. you're 100% right. bank of america being sued for $10 billion by aig, the financials really are -- >> aig which got us into the big pickle anyway. they want $10 billion. >> they want $10 billion but again, we're in bed with aig, so to speak. bottom line is the financials usually do tell the tale. you got to watch the banks, watch the bank stocks to see where the economy is going. they've been having a rough go of it at least in the equities market. we know all these companies are making a lot of money. the problem is they're making money and putting it in their pockets and they're not hiring. need to really get the economy moving again.

they need to start hiring. they need to start spending the money that they've been accumulating. >> and as things tighten up, they spend less money. apparently, according to the report we're quoting today, the good news is they have more liquid assets, they have more money in the bank than 2008 and the bankers say there has been a high level of concern. but short of the panic that was felt a couple of years ago and that at least is in small measure a good thing. >> we have breaking news right now because things are going on in london right now, we were talking about those riots. this is david cameron, the prime minister addressing the country live right now. he decided to come back from his vacation actually and now he's just given a short speech there to address the situation. lawmakers are also being called back now to address the situation in the u.k. there's no signs, though, that the rioting is going to stop. take a look at this video right here. this is the third night now of these protests. what's going on in liverpool and

birmingham? we'll continue to keep you abreast of the situation there. meantime, recall elections in wisconsin today putting the careers of six state senators in control of the state senate on the line. democrats want to recall the six republicans after they voted for that bill stripping public sector unions of collective bargaining rights. >> we need to have a state senator in this district who really represents the people of this district who will fight for education, fight for families, fight for growth of our state. >> i'm being recalled for doing what i was elected to do. i had a big job, to balance a $3.6 trillion without raising taxes, we had to make cuts but did it without making major layoffs. >> that senator you just heard from, alberta darling will join us live on "fox & friends" coming up in the next hour to talk about her recall race. the new york hotel maid that accused former head of the international monetary fund of sexual assault filing a civil suit against him now. she is seeking unspecified damages from dominique

strauss-khan for physical and mental harm as well as damage to her reputation. meantime, the strauss-khan criminal case is still pending even though the maid's credibility has been called into question. next court date is august 23rdrd. this logo causing some folks to scratch their head. government sponsored smithsonian institution created a blog called department of innovation inspired by president obama's sputnik moment speech in january but arranged in this fashion, the three interlocking in the logo won't move in any direction. they're just stuck. >> it's perfect. it's a perfect logo for gridlock. and that's what we got plenty of down in washington. when the president spoke yesterday, the markets dropped. is there anything he can do to inspire american investors? charlie gasparino from fox business network in our studio. he's coming to the curvy couch. >> outrage over arnold's outfit.

does that shirt say i survived maria. what? [ male announcer ] heard this one?

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yesterday as the dow dropped, president obama took to the podium to attempt to reassure nervous investors. were you watching? then the dow dropped even more. >> that's right. the cover of "the new york post" today says tanks a lot. so do the markets have any confidence in our leaders? fox business network senior correspondent charlie gasparino joins us live. while the president was on television trying to reassure the country, you were talking to traders down on wall street and they were telling you what? >> i was on the floor of the stock exchange yesterday. listen, there wasn't a trader there and by the way, the floor of the new york stock exchange is not a hotbed of tea party traders. they wanted to make money and some are liberal. what they said every one of them, i talked about six, seven, was that that speech was one of the most uninspiring economic speeches they've heard in their lifetime and the sell orders started to pile in when he started talking particularly when he mentioned raising taxes. i mean, listen, here's the thing. we need to get this economy

going. there's no doubt. at the heart of the downgrade, forget about everything you've read in the "new york times" today. at the heart of the downgrade is the fact that the economy is not growing, that we don't have the revenues, that we have deficits and we have to borrow to plug those deficits and he came out there after citing warren buffet, he talked about raising taxes. it was a disheartening speech. >> let me ask you this -- what should he have said that would have caused the traders that you spoke to to feel confident, to not massively sell? >> i think back, you know, when leaders during times of crisis and they're caught off guard, they're at the podium when things are happening. i think of rudy giuliani during 9/11 where he inspired the nation and the city. you don't have to have the most specific plan. you do have to inspire confidence and one way you don't inspire confidence is giving what -- giving the same speech you've given for the past 2 1/2 years. millionaires and billionaires, raise their taxes. i want to start an infrastructure bank. we tried that. this was a snoozer and, you know, every time this happens,

you know, geithner gave a similar type speech. i remember right after he was confirmed. when he was confirmed, markets went up, you know why? they were glad that -- >> he was the only guy that could save our nation. >> that and at least obama didn't pick bill ahers as his treasury secretary. his first major address of that, the markets came down considerably because he gave the same set of clueless speech and i think the president really -- if he wants to get the markets in order, he really has to address the nation in a more concerted, coherent way and leave the class warfare out, you know, talk about how we're going to work with republicans. would have have been nice if he had john boehner and eric cantor with him. >> that would have been terrific. that would have looked like a united front. whole government is working on something. touching on geithner, though, in the beginning, we overlooked the fact that he forgot to pay taxes for a couple of years because he is the guy but now more and more people in washington and across the country are calling for mr. geithner's resignation.

here are a couple of soundbites from some republicans calling him to go. >> number one thing that needs to be done, i think the treasury secretary has to go. if your economic team isn't working, you have to get somebody in that knows what to do. that needs to be done. >> having had timothy geithner sit before us and testify in the small business committee, when you open that refrigerator door, the lights don't come on. >> funny soundbite but he obviously does not like him. >> we should also point out that tim geithner was one of the regulators in charge of looking after wall street during the financial crisis. >> how did that go? >> i mean, listen, i've never been big on this guy, you know, i've always thought he was a regulator asleep at the switch. he was the new york fed president. that's the guy mainly in charge of wall street. >> you say he's a bureaucrat. >> long time bureaucrat. >> do we need a bureaucrat as treasury secretary or do we need somebody who is doing this on a daily basis on wall street? >> you had like to see an entrepreneur. i would like to see a guy that

knows -- >> donald trump. that's what mike huckabee said. >> i think donald trump knows how to make money and he's a no nonsense guy. i think anything at this point is a trade up from tim geithner when you have a businessman involved. problem is the president doesn't really like businessmen. you don't get the impression. if you look at the business people, the few that are around them, they're sort of corporate bureaucrat types from the big banks like bailey who is a very nice guy, very smart guy but, you know, bill bailey is a politico that worked at a big bank at a lobbyist. i mean, he's not a guy that, you know, built a business. >> i'm not so sure he's even listening to bill bailey right now. i think he's listening to campaign people. >> i don't think he listens to anybody but, you know, there's a few people. bob ruben once told me, former treasury secretary says once obama said one of the problems you've had, you don't know a lot about business. for that, i have valerie jarrett. now, valerie jarrett is, i'm

sure she's a nice woman but she wasn't exactly a big time business person. she was a politico in chicago. she was kind of a lobbyist that got real estate deals based on her connections with government. that is not the -- that is not an inspiring statement. >> fast forward, here we are today. >> absolutely. >> charlie, fox business network, thank you very much. great perspective. >> thank you. >> thank you, sir. >> it was the deadliest attack on americans in afghanistan over the weekend but was it well plotted? our heroes, were they lured into a trap? new information on the navy seal chopper that went down in flames. >> then he uncovered secrets from the f.b.i., the c.i.a. and the secret service. but wait until you see what he found out about marilyn monroe and her relationship with -- bobby kennedy. ♪

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>> quick headlines for you. they are ending the page program because of budget cuts. it allowed high school students to serve as messengers in congress. cutting the program will save about $5 million a year. the senate keeping its page program. and remember the shocking video from center city, philadelphia of a mob of teenagers beating down random strangers? well, now, philadelphia mayor michael nutter is threatening the city -- rather, tightening the city's curfew. no one under the age of 13 will be allowed downtown after 9:00 p.m. on weekends. those who break the curfew will get a ticket. eric, gretch? >> thank you, steven. from watergate to waco, the

f.b.i. has been front and center for highly publicized cases. though the agency has been shrouded in mystery, a new book aims to change that. >> "the secrets of the f.b.i." gives readers an inside look at the history of the f.b.i. and reveals some of its most guarded secrets. ron kessler is the author and a chief washington correspondent for newsmax.com and he's our guest right now. good morning to you. >> great to be with you. >> i understand you've developed these wonderful relationships with high ranking people that tell you stuff. do they know you'll put it in a book? >> they do. and actually, bob muller, the f.b.i. director personally approved giving me this material on how the f.b.i. breaks in homes and offices and even embassies to plant bugging devices without getting caught and shot as burglars. what they too is weeks before the break-in, they will conduct surveillance of the target and figure out who goes in, who goes out. on the night of the break-in, they'll watch those people at their homes and make sure they

don't go back. if they do, they'll dress as police officers and stop them or have a phony traffic accident or open a fire hydrant in the area so that nobody can go back and beforehand, they also take a photo of any dog that might be on the premises and they show it to a vet who is on contract. he prescribes just the right amount of tranquilizer and the agent shoot the dog with a dart gun and at the end of the break-in. they wake him up. >> tell us a little bit about the marilyn monroe, bobby kennedy, call it scandal? >> juicy stuff. let's get to the juicy stuff. >> tell us what you know. >> just after marilyn monroe's suicide, a teletype came into the headquarters from the head of the los angeles field office saying he had lent his personal car to bobby kennedy, the attorney general to see marilyn before her death secretly, of course. i confirmed with his children that on a regular basis he would lend his personal car to bobby

to go see marilyn. >> wow. >> and then -- >> what are we supposed to gain from that information? what do you gain from that information? >> i surmise that he broke up with her and that's why she committed suicide. just given the timing. but on another suicide, vince foster, the deputy white house counsel under clinton, he was depressed. he did commit suicide. but what the f.b.i. found that never came out before is that a week before his suicide, hillary clinton had a big meeting in the white house with him and other aides about her health care legislation and she violently disagreed with the legal objection he read and she totally humiliated in front of all of these white house aides. you are small town -- you are a small town hick lawyer. you'll never make it in the big time. and after that, his demeanor changed. his -- he became very withdrawn. he would break into tears. and a week later, he committed suicide and the f.b.i. concluded

that is it what triggered his decision to commit suicide. >> well, we know now why you're a journalist and why you're a writer, because you like to get to the heart of the matter. if people want to check out the book, the new one it's called "the secrets of the f.b.i." so many other stories besides the one we have highlighted here. chief correspondent of newsmax.com, thanks so much for your time. >> thank you, gretchen. this man diagnosed with stage 2 breast cancer but the government will not cover his expenses. why? because he's not a woman. he's here to tell his story. >> and arnold's first public comments since his divorce on a t-shirt? check it out closely, on the back it says i survived maria? are you kidding me? >> first, happy birthday to whitney houston, the singer turns 48 today. [ jon ] we don't just come up here for the view up in alaska.

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>> fox news alert. we've been watching the markets around the world this morning, stocks tanked again. today as many global markets entered official bear market territory after one of the worst days on wall street sin the collapse of lehman brothers in 2008. >> all right, so overnight, we were looking, of course, at the asian markets. they briefly recouped earlier losses and in what was going on in europe, the stocks opened higher today but that rally apparently was short term as investors worried about the consequences now of the u.s. credit downgrade. keep in mind, europe is going through a debt crisis. yesterday was our downfall of 600 and whatever points, was that from the european debt situation or the s&p downgrade? sorry to say, we had two major issues that could be causing it. >> as you wake up, you're wondering what happened in asia.

the hang seng finished down 5.6%. it had been down as much as 7% at one point. the nikkei down 1.6. not as bad there. if you look to europe, the continent is down 2%, 3%. down 3 1/2 right now midday trading and the dax had been down. >> important to note, we have this exact same thing play out monday night, steve, i'm sorry, sunday night, monday morning. we were sitting here and talking on the couch. the asian markets were very weak sunday night. last night, we were doing the show on the fox business network. i was sitting there watching, hosting the show. we went down from down 100 futures again but indicating a lower opening to down 200, to down 300. to down 350. we put the asian markets to bed. we woke up this morning in europe, again, floated the boat a little bit like it had yesterday. problem is when the u.s. markets open up, that's when the selling came back and it really -- the markets started to tank once again but right now, we're sitting up a little bit.

up a little bit. but it's a great improvement from late last night. >> do you agree with the fact that it was oversold yesterday so we might see a bounce today? >> no, gretchen, because these are big things. this is the first time ever u.s. downgrade of american debt. this is a -- this isn't an overbought, oversold or just money is moving in and out of markets. this is a true economic event and again, we -- gussied it up a little bit the last half-hour but i think mr. obama just missed the boat. charlie gasparino pointed out, he had an opportunity to come with the credible ideas. it's the same old don't worry, we'll fix it down the road. thing are going to be better. problem is every time things get better for a short period of time, they roll over and end up worse. so we're constantly digging out of a ditch. >> let's talk now a little bit about a tragedy. we've been telling you about the 30 men who were killed in what -- in helicopter, chinook helicopter like that a couple of

days ago. as it turns out, it sounds like they were actually lured into a trap by the taliban. there's a story out there that a taliban commander lured the united states to a particular location. they apparently telegraphed, ok, they're having a big taliban meeting at this location. the rangers went in first. next thing you know, we send in that helicopter full of seals. >> it's interesting because they don't usually travel with that many seals in one helicopter. it sounds like it was some kind of urgent situation where they had to get people there to rescue the other rangers on the ground. some of the other details coming out. included in that report that maybe this attack was in retaliation for killing usama bin laden so maybe the taliban, this was their way of bringing down a lot of our -- keep in mind, it was the same people who died. these navy seals who died were part of the same team that took down usama bin laden. >> very, very sad day.

>> absolutely sad day. the bodies are being transported back to the u.s. right now as we speak. >> as we're talking about that, it is going to be an emotional day for the family and friends of those 30 heroes killed. remain of the soldiers arriving at the air force base this morning. >> kelly wright is live in washington, d.c. with the latest on this somber day. kelly? >> steve, gretchen, eric, good morning to you. when the fallen u.s. troops return to dover air force base today, it will be close to members of the media. this is a time when the nation mourns the loss and prays for those who sacrificed their lives for the security of this country. the family of the soldiers who lost their lives in afghanistan this weekend will be at dover air force base to welcome them home. it will be a somber reality of how painful war can be. 30 u.s. troops lost their lives in the downing of their helicopter as they were rushing in to taliban area to help u.s. special forces pinned down by enemy fire.

the pentagon believes the taliban fired an rpg at that time which is the likely cause of the crash. but the investigation continues as it's still ongoing. what we do know is as a result of that, many people are now saying what happened there? as that investigation ensues, the pentagon is saying it will go on. president obama says those who died are the embodiment of the american spirit. >> their loss is a stark reminder of the risks that our men and women in uniform take every single day on behalf of their country. day after day. night after night they carry out missions like this in the face of enemy fire and grave danger. >> they were far from home. but we know that they were also where they wanted to be. >> among the dead, some of whom are pictured here were 22 members of the u.s. navy's elite seal team. team 6, if you will. you'll remember that's the same

team that raided the usama bin laden compound back in may although these members were not part of that group that killed the al-qaida leader. that chopper crash saturday was the single largest loss of american life in the war in afghanistan thus far and certainly one of the biggest blows the seals have ever seen in their ranks. the pentagon says this is not a setback nor a sign of a taliban resurgence. they will continue to fight the campaign there in afghanistan and protect the world from terrorism. back to you guys. >> kelly, as i understand it, the pentagon is not going to allow any pictures this time, right? why? >> that's what i was saying, the media will not be allowed. there won't be anything like that allowed so far. >> why is that? >> that's because of the way the bodies have been assembled, steve, it was very -- if you can imagine, you're going upon a scene and had a fiery crash, perhaps, from that rpg that's the likely scenario although it's still under investigation but there were no recognitions

of those bodies and they want this to be a time and a moment for the families to reflect on the lives that their children actually gave. >> understood. all right, kelly wright live in the d.c. bureau. thanks. >> sure. now the rest of your headlines and we start with a fox news alert. british prime minister david cameron calling parliament back to london now for emergency meetings following the outbreaks of the violent riots there three days in a row. cameron speaking outside 10 downing street moments ago. >> this is pure and simple and it has to be confronted and defeated. >> prime minister cameron also said that 16,000 police will be on the streets tonight but so far, there are no plans to call in the military. this comes after the riots continued to spread throughout london neighborhoods and other british cities like birmingham and liverpool. windows were smashed, fires set. it all started after a father of four was gunned down by police in a racially charged north london suburb over the weekend.

eric? >> a federal appeals court says two former contractors who were reportedly tortured in iraq can sue former defense secretary donald rumsfeld. the lawsuit filed by donald vance and nathan ertal claims that rumsfeld personally approved of methods in iraq making them responsible for their detention and torture. he says it faces a dangerous precedent and could hurt the u.s. military in the future. >> meanwhile, a second person has died after participating in the new york city triathalon. 40-year-old amy martich of illinois stopped breathing during the swimming portion of the race this past sunday. she later died ate hospital. she was the vice president of a finance firm and she had three young children. her death comes after 64-year-old mike krudiach of new jersey died swimming as well. and had a heart attack.

>> you be the judge. check this out. arnold schwarzenegger spotted sporting this t-shirt that says "i survived maria" "on the back. there's more to the story. he got the shirt and it turns out shriver's employees designed these t-shirts themselves, writing in the date themselves, the year they started dating. despite their divorce drama, they are reportedly on good terms. i'm not so sure that any p.r. firm would tell arnold that's a good idea to wear that in the mid of a high profile divorce. some might get the wrong idea. >> he survived maria, i guess, while he was in office as governor. i don't get it. >> he probably should have retired it from his wardrobe. >> no kidding. he has enough cash to buy something else. coming up on the show, the government says it's a women's disease. a man denied coverage for his stage two breast cancer because

he's a man. is that fair? you'll meet him here live. >> and then congress wants to investigate the s&p for down grading our credit. but can they? judge andrew napolitano explains our options next. [ male announcer ] imagine all of your missed opportunities in one place. the winning horse you could have picked. ♪ that "old flame" you should have called. ♪ that leap of faith you never took. but there's one opportunity that's too good to miss. the lexus golden opportunity sales event, with exceptional values on the lexus is. but only until september 6th. see your lexus dealer.

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rad >> quick headlines, it's the clearest sign yet that rick perry plans to join the presidential race. he's set to visit key states this weekend, the same day his potential republican candidates are battling it out in the iowa straw poll. perry has also reportedly been lining up donors and staff. and the d.b. cooper mystery continues. there's no match between the new suspect's d.n.a. and the necktie left on the hijacked plane in

1971. the f.b.i. says this doesn't rule out the suspect who has been dead for several years. recently, marla cooper came forward claiming his uncle, lyn doyle cooper is the hijacker. it's believed he is the f.b.i.'s new suspect. steven? >> thank you, eric. downgrade. and the markets react. well, now, the u.s. senate banking committee could be turning the screws to the s&p after they downgraded the u.s. debt. looking into a possible investigation. but does congress hold any sort of legal sway over them? let's talk to fox news judicial analyst and the host of "freedom watch" and the co-host of the five and it's amazing he has time to even sit down with us, he's so busy. judge andrew napolitano. >> steve, good morning. >> can the senate investigate them now? >> in the senate, it can investigate anything it wants. remember, it once asked roger

clemens what the content of his urine was. even though there's nothing in the constitution about that. where can the investigation go? what s&p does is an express an opinion and opinions are -- are pe protect by the first amendment. as long as the s&p gives reasons for the opinions and not saying things like 2 plus 2 equals 5, giving reasons that it accepted in the industry, it can say anything it wants. people are free to accept its opinion or reject its opinion but there's no cause of action because of the opinion. >> we've already heard from the s&p guys, chambers was on this program yesterday. they told us their opinion. now, just because the democrats on this senate banking committee might not agree with it, does that mean they can still call them up and say, ok, i want to know the answer to that. >> unfortunately they can. the one thing that politicians are superb at are pointing fingers. look, s&p is not without fault. they once gave a triple a rating

to enron shortly before it collapsed but again, it's just their opinion. they're entitled to it. they can express it and we can reject it. >> the judge just mentioned enron. let's go to the big board. they gave enron triple a. they gave mortgage backed securities a triple a. and right behind me, lehman brothers, they downgraded them to a single a just a week before the collapse. >> they gave the mortgage backed securities a triple a about a month before the housing market collapsed in september of 2008. so they are fallible like everybody else. why does everybody rely on them? the other rating agencies kept the american government at triple a. >> but if they are going to be a rating agency and tell us about the risks involved, can't they be held liable when they make such a bone headed mistake like they did with mortgage backed securities? >> answer in a word, no. >> because it's their opinion. >> correct. correct. they're not telling you what to do with your money. they're not assuring you what will happen with your money. they're just saying in our

opinion, this is a good investment. in our opinion, this is not a good investment. look, the united states government spends a trillion and a half more dollars each year than it takes in. and when it has to make up the difference, it just keeps borrowing more and it does that over and over and over again. we don't deserve a triple a rating! there's a very good argument to support what they said. >> absolutely. all right. judge andrew napolitano, we thank you very much. we'll be watching you today throughout the day. >> pleasure. >> thank you. >> all over the television universe. he's a busy guy. he's got a show weeknights at 8:00 on fox business. thank you. straight ahead, is breast cancer really a women's disease? the government says yes. a man denied medicaid for his stage 2 breast cancer. here next with his story. and republicans under fire in wisconsin. we'll talk to one of the lawmakers who could lose her seat today for voting to bring unions under control.

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>> welcome back, everyone. at the young age of 26, raymond johnson learns that he has breast cancer, a rare condition in men. he didn't have insurance and wasn't able to pay for the treatment himself so he applied for medicaid but he was told he's not eligible because men are not covered for breast cancer treatment. raymond joins us now this morning from charleston. good to see you this morning. first of all, how are you feeling? >> i'm ok this morning. good morning to everybody else. >> good morning to you. i know so far, you've been able to have two chemotherapy treatments since being diagnosed. but you have no insurance and

you were denied coverage by medicaid. what did they tell you because you were a man? >> they just told me that the federal government has policies saying that they did studies and they only cover women because men are really not -- not -- i mean, really don't have breast cancer like that. so they denied me. >> you must have been shocked when you received that because there's been a lot of press in the last decade or so about the fact that this is a disease for men as well and that it can strike men. so what did you do about it? >> well, with the chemo and everything, you don't want to stress yourself out. basically like right now, i'm doing as much as i can. and i'm letting it build up. i have organizations that help me and churches and i'm just not

trying to stress myself out about it right now. >> right. because you keep in mind that you also have cancer right now so stress probably does not -- is not a good thing. i want to alert our viewers that it's about $10,000 per treatment, right? >> yes. >> ok. >> i want to read a statement from the centers for medicare and medicaid when we contacted them about your specific case. here's what they said. the law governing this specific program is linked to a cdc screening program. we are working with the cdc and south carolina to see what options may exist to address this situation. it's a little vague in the statement but do you see any hope in what they said about possibly giving you coverage? >> i'm hoping but basically, i know that god is working with me with this and the organizations will help if this doesn't help

me. >> ok. i know that you have said that cancer doesn't discriminate. >> it doesn't. >> so this program shouldn't discriminate? >> no, it doesn't. it shouldn't. it shouldn't. because like i said, cancer doesn't discriminate. men have breasts and women have breasts. cancer will come to you any way. >> if at the very least, we can help somebody else this morning, would you mind telling us how you found out that you were sick? >> well, being a typical male, i had like a lump in my chest. i thought it was a cyst. i thought just whatever, just let it go by. but i went to work that thursday before fourth of july, i had a chest pain after work. i went home. i took a pain medicine -- took some pain medicine. it didn't work so i went to the

emergency room and they hooked me up to the heart monitors and everything, everything was fine with that. i told them about the lump. the next day they sent me to a specialist. she did the biopsy that day. she told me that she would have like the results by that thursday. she called me back the day after fourth of july and she told me the news that i have cancer. >> wow. >> raymond johnson, i certainly hope that by bringing attention to your story that we can get you help and we'll keep our viewers abreast of this story and the best to you as well. >> thank you. >> well, the president's speech on the u.s. downgrade only succeeded in one department, making world markets tank. did you see what happened yesterday? now your money on the line again today. what can you expect when wall street opens for business coming up at the top of the hour. then after decades of secrecy, the women seen kissing elvis in this iconic photo. the woman shows her face finally?

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do i look like i have a plan? not really. [ female announcer ] only flood insurance covers floods. for a free brochure, call the number on your screen. >> top of the morning to you. i'm gretchen carlson. let's hope it's a great day on the stock market at least. up and down we go. asian markets reeled from the stock market dive. will the markets continue the free fall today? latest details coming up live. >> up about 100 right now. as the president speaks, the market sinks. the president tries to calm the economic woes. does he have a plan to stop the bleeding? we report, you decide. >> meanwhile, london burning, an explosion of violence, hundreds arrested and the prime minister

calls the scene sickening and now a show of force to deal with that mess. "fox & friends" hour three for a tuesday starts right now. >> i say hour three, we started an hour early because we wanted to give you a heads-up of what's going on in asia and europe. that's why we have eric bolling in brian's chair today. >> 350 dow points lower last night. >> after the market. >> that was in addition to the 635 yesterday. now as we speak, the markets made all of that back in and this looks like as of now, a green. and a little bit of a higher opening so a little bit of good news. >> all right. so as wall street tanks yesterday, amid america's credit downgrade, folks are wondering, if there's any relief in sight.

>> from fox business, in the heart of times square right now over by the nasdaq. sandra, what about today? >> gretchen, steve, eric, i mean, you know, this is just another day for these investors. i mean, we've been talking to people on the street for weeks now. on this market selloff. i got to tell you, that the latest reaction from americans is that, you know, they're timid and afraid to invest in this market right now and that's evident by the number of dollars being saved in the bank. while we're talking about america struggling, we're seeing saving rates on the rise. people don't want their money in the stock market right now. we'll be talking to people all day about how they feel about this market situation but the one thing you don't want to have do is you don't want to have investors so nervous that they -- when we continue to see these large selloffs just yank their money out of the market. you don't want to panic. so we're going to be talking to folks to see what it is that

would make them more confident, confident enough to not only prevent them from pulling their money out of the market, you know, you don't want to look at your 401k on a daily basis but what would make them more confident to put their money back in the market? that's a very tough dilemma for people on the street right now. they're not happy about the political situation. they're not happy about the economy and they're still worried about their neighbor losing the job. themselves losing their job. tough environment right now, guys. i would say there's one big difference and we talk about the 600 point drop that we saw on the dow yesterday and how it reminds us all of 2008. one thing is very different. when you talk to folks on the street about their investments, about their life, one thing is very different. they're much more in tune now than they were a few years ago. they're following the news more closely. they're following their investments more closely. they're more aware, i would say, guys, and, you know, that's an instance where we need to keep them more informed, that's what we're aiming to do out here today. >> very good. sandra, thank you for the live

report from broadway in times square. >> what a lot of americans wanted yesterday was a pep talk from the president. they wanted the president to come back from his weekend where we heard nothing from him. and he called a press conference or at least he said he was going to make a statement. yep, here we go. get excited, right? we wanted a plan and we wanted reassurance that our markets were going to be ok. that america is still at a triple a rating. he said that but did he actually give a plan? did he call congress back? no. >> and no plan either. >> that's really responsive. >> what's interesting -- you could tell and we had charlie gasparino with us about an hour ago and he was actually down on wall street during the president's speech and he was able to gauge the reaction and the more they heard, the more they sold. take a look at the numbers. when the speech started, just a little before 2:00, the dow was down 410 points. 10 minutes after the speech, down 423. 30 minutes later, down 605. it finished at 634.

the big selloff in 2 1/2 years. people did not hear what they wanted to hear. they wanted to hear a plan from the president. instead, we heard a lot of recycled stuff that we've heard over the last 2 1/2 years. >> let's hear it again. >> sure. >> markets will rise and fall. this is the united states of america. no matter what some agency may say. we've always been and always will be a triple a country. in fact, warren buffet who knows a thing or two about good investments say if there were a quadruple a rating, i'd give the united states that. so it's not lack of plans or policies that's the problem here. it's a lack of political will in washington. i intend to present my own recommendations over the coming weeks on how we should proceed. and that committee will have this administration's full

cooperation and i assure you, we will stay on it until we get the job done. >> one thing the president did say was that was proactive is he was going to supply a plan to that super committee. >> recommendation. >> recommendation. >> oh, man. you know what that was? >> i'm just saying, you know, with all due respect, you have to say that was -- that was the headline that came out of this speech. >> you remember watching "wizard of oz" with your kids. remember they finally get to see the wizard, everybody is waiting to see the wizard and it's this big thing and there's smoke and fire and there's that little guy behind the curtain there. what a letdown much the markets told you that. it's 400 lower, give us something. we ended 650 lower and tacked on another 350 with 1,000 points slide. >> you're talk the wizard of omaha? >> never mind the man behind the curtain. john writes in "the post" today this is the worst moment of obama's presidency bar none and to put it mildly, he isn't

rising to it. rush limbaugh said yesterday on his program, he said obama is a debt man walking in 2012. he went on to say obama-geddon. that's now what we have witnessed since friday. it's barack-olypse now. >> america just lost the triple a credit rating and now we're double a plus. there are about 10 or 12 states that are rated triple a right now. they can no longer be triple a rated. at some point, the rating agencies are going to come together and say they're getting a lot of their funding from the federal government. if they're getting federal government at double a plus ratings there's no way they can survive a triple a rating and that's going to affect millions of investors. millions of people with that in their portfolio. >> one of the most important things that came out of that debt deal last week was this super committee, though, and who the heck is going to be on it? to me, this is the most important thing that can happen in the near future if the

president isn't going to call back the congress in august and do something else sooner which i would think that he should but in the event that he doesn't, who will be on the super committee because are you going to put people who are on the far right and the far left and then have them duke it out. and the triggers go into effect, cut the pentagon, cut medicare and medicaid or are you going to put on people who are more middle of the road and hope there's some sort of compromise? to me, this is the most important decision this country has faced for quite sometime. >> you can see from that particular graph, boehner gets to pick three names and also nancy pelosi gets to pick three. mitch mcconnell gets to pick three. it looks like we've got four on each of those. anyway, a total of 12 in all from the four of them. deadline to name the people will be august 16th. 12 names in all. but we already know apparently the democrats in particular

moveon.org. they are pushing harry reid and they've written him a note and said look, whoever you put on there, they have to be absolutely four square behind, not touching social security because they're worried about guys like dick durbin and kent conrad, both powerful democrats who have in the past said they would be open to doing something about social security. >> and that's what we talked about, when they put this debt deal together that the far left was left out of the deal and if this super committee and whatever you want to call it, was -- was going to be funded or snapped, why since they were left out of the debt deal initially they'll make it up to giving seats to the super committee. if you have a far left left and a tea party right, that i would hope as a conservative would be on the right side, you're going to end up with the same thing we've had. the gridlock, gridlock, gridlock. >> and they're only going to come up with $1.5 trillion in cuts which is a drop in the bucket. so otherwise, those triggers go

into effect. so last night, president obama was at two fundraisers. maybe he gave us a precursor to what he would put in that plan that he's going to hand off to the super committee. here's a quote on fixing the deficit from the president. we've got to fix our long term finances. what that requires is for us to pay our fair share. we've heard this before. if we did those things over the course of 20 or 30 years, then the problem would be solved. it's not rocket science. yesterday, again, in the speech, he used that same buzz word he's used a lot of times before. a balanced approach. >> and charlie pointed out during that presidential speech at the podium yesterday that the president brought up more new taxes. well, eric cantor had a suggestion that we shouldn't use any new taxes and he said "over the next several mosses, there will be tremendous pressure on congress to prove the analysis of the inability for the political parties to bridge our differences is wrong, in short, there will be pressure to compromise on tax increases. we will be told that there is no

other way forward. i respectfully disagree." >> maybe they can come up with tax reform. which would be different and would actually be good for this country. we'll see. now the rest of your headlines and a fox news alert. the sony building in london is among dozens set on fire as riots are spiralling out of control in london right now. british prime minister david cameron coming off vacation and calling for parliament to return as well from vacation to figure out what the heck to do next. cameron also vowing to do whatever it takes to restore order. >> i'm determined, the government is determined that justice will be done and these people will see the consequences of their actions. >> there will be about 16,000 police on london's streets tonight. triple the usual number but cameron has not yet called on the military for help. riots have spread to other british cities like birmingham and liverpool. so far, 450 people have been arrested. the violence started after a father of four was shot by police in a racially charged

north london suburb. another fox news alert for you this morning. a radical anti-american shiite issuing a serious threat against u.s. troops. the cleric telling american troops this morning to leave iraq and go back to their own families or they'll become the target of new attacks. the rare statement just appeared on his web site. he wants americans to use the roughly 46,000 u.s. troops are not welcome in iraq. it's been a mystery for years. who's that woman? kissing elvis before a concert in richmond, virginia in 1956. now we finally know. 75-year-old barbara gray, a real estate manager from charleston, south carolina, says yes, she's the woman in the picture. she became fed up to being the unknown woman. did she do it anonymously? where is she? >> kids, that's your grandma. >> after all these years. >> yes. fed up. and she fell 50 feet off the cliff, broke her leg and her

back. but she didn't want to die. so this woman survived days in the wilderness with nothing but berries and bugs. >> and the stimulus car bailout and unemployment tanking under his watch. now, some want treasury secretary tim geithner to quit. one of theme is rhence priebus. he's coming up are from new york. [ male announcer ] imagine all of your missed opportunities

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>> is there a risk that the united states could lose its triple a credit rating? so standard & poor's is wrong, the united states will keep its triple a credit rating. >> absolutely. >> absolutely. that was april. while tim geithner's words are coming back to haunt the treasury secretary now, many are calling for geithner to step down from his post including our next guest. reince priebus is the chairman of the republican national committee and joins us live. good morning to you, sir. >> hey, good morning, steve. >> we had -- we had colonel allen west on the program yesterday and he said he had no faith in him and he should go. why do you think the treasury secretary has got to cash in his chips? >> well, we can't get rid of

the president who is, you know, in that constant state of denial but we have a treasury secretary who is overseeing policies that this president has put in place that has made everything completely worse. and turned our economy into a disaster. you saw the clip there where our treasury secretary ensured the nation and the world that in fact, we couldn't possibly lose our triple a rating. in fact, obviously, that isn't true and i just think he's lost the confidence of the -- of the financial world in this -- in this country and i think that the president's obviously lost the confidence of the voters but we can't get rid of barack obama who has been a constant hunger for pageantry, speeches, fundraisers. he's waking up this morning from a fundraiser somewhere and the rest of the country is looking for leadership so i think we need a change of the secretary of treasury. >> speaking of leadership, i was talking to somebody who actually voted for obama in the last time around. he's a political independent.

he was very disappointed in what the president said yesterday. you know, we were looking for somebody with leadership and a president. instead, we got a politician. >> what americans are starving for in this country and it's not republican or democrat, people are starving for real, authentic people who are people of their word to lead this nation in tough times. this president does not exhibit anything like -- like that. he needs to exhibit leadership. he needs to engage. you know, and i think americans are tired of the show ponies in washington. we want work horses. this president is not one of them. he's not engaged. he's in a constant addiction of campaigning. >> meanwhile, this -- a couple of days until the ames straw poll. the democrats are launching extreme ames, a-i-m-s, it's a campaign. and we have a little snippet to

show people what it looks like. look at this. >> just like washington and the tea party, candidates want to thin medicare as we know it, slash funding for education and job creation. >> what they're trying to do effectively is class warfare on you guys. >> well, look, i mean, i think what the democrats have been doing for the last 2 1/2 years is number one, like we talked before, not leading but blaming everybody but themselves but number three, making any person, a person like paul ryan who puts a very serious plan on the table to save medicare, to ensure that medicare is sustained for people -- for every person in america. doesn't touch medicare for seniors. trying to resolve the problems, the long term fiscal problems of this country and they're vilifying any person in america that comes up with any plan that's right to save our economy. that's what they're doing and they same time, our stock market is dropping 400 to 500 points a day. the president is giving speeches

offering nothing specific and, in fact, steve, yesterday, the president came out and said, we might want to do something for medicare. stop running the ad and figure out what you want to do with medicare and offer something specific. they don't want to offer specifics, steve, and the reason they don't want to offer specifics is they don't want anyone to criticize anything they're doing so instead. they're doing nothing and then vilifying any republican that tries to dare offer some plan to get our economy back on track. and this has to the got to stop in this country. >> thank you, sir, for joining us today. >> thank you, steve. >> thank you as well. >> all right. meanwhile, straight ahead on the rundown, remember the big showdown in wisconsin with the budget. republican lawmakers are facing a recall. up next, the g.o.p. lawmaker to could lose her job for voting to bring unions under control. and get ready to have the time of your life all over again. dirty dancing making a comeback

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>> time now for your news by the numbers on this tuesday. first, seven. spanish soccer team madrid has signed this 7-year-old prodigy to its youth academy. his name is leo and he's from argentina. he's believed to be the youngest player ever signed by a professional team. that's amazing. next, $5 million. that's how much cash the house will save after they have cut the 200-year-old page program in the house of representatives. the use of e-mail is rendering the page messenger service unnecessary.

and finally, 29 hours. that's how long 61-year-old diana swam before having to give up her record-setting 100 mile swim between florida to cuba. well, it turns out some shoulder pain, asthma and high winds forced her to stop early. nonetheless, a valiant effort. gretch? >> no doubt. residents of wisconsin are ready to head to the polls today. why would they be going to the polls today? is it election time? no, it's the recall election of six republican state senators. >> they are a fallout from the wisconsin state law that ended collective bargaining for unions and sparked massive protests earlier this year. but our next guest says the elections aren't just about local politics. instead, she expects them to impact the 2012 presidential race. joining us by phone right now is republican state senator facing a recall vote, alberta darling.

we have a recall vote for you and five other republican state senators. if i'm not mistaken, there's some democrats who are facing a recall vote as well. is that right? >> that's right, eric. they're up next week. >> so what -- in, i guess, the last couple of months or so, governor walker came out and said wisconsin is doing things right since this collective bargaining renegotiation and it's actually producing jobs. does this bode well for you in the recall vote today? >> the fear and scare tactics that were used by the powerful labor unions said that we'd have all sorts of massive chaos, massive teacher layoffs would happen, that we'd have major cuts to classrooms and we'd have massi massive cuts to hard working wisconsin families and very little if none of the above has happened and the scare tactics goes on, though. this does foreshadow what's happening in 2012. >> in what way?

>> because president obama has very much been on the ground in wisconsin. when we decided we were going to get wisconsin on the right track and cut spending, and deficit, balance the budget and be in the black for the first time in 14 years, obama said no way are you going to take on collective bargaining because it's the fuel for the democratic elections and the biggest thing is now the teachers will have the freedom to choose whether they want to join the union or not and all public employees will have the right to choose whether they want to join the union or not and this is really making the obama administration very anxious and they've been in our state on the ground for months and it is working. what we did the country should do because we took control of our spending. we made decisions that were really tough but we gave our local schools and municipalities and counties the tools, the savings that they needed to offset the cuts but that involved doing things differently. and the unions were just furious

that we were going to overstep their iron fist. >> it's my understanding that you had to get -- or the people that wanted to recall you had to give a specific number of signatures on a petition, right? >> that's correct. >> so that did happen on both sides as we said in the beginning because next week, it will be for the democratic -- >> it did. but my colleagues on the other side left the state to prevent us from making a -- taking a vote on getting the state back on the right track. and it's working. we stayed and did the hard work. when our former governor doyle raised taxes by -- spending by $4 billion and drove us into debt and put our state into a turn of job losses and companies leaving wisconsin, you know, they left. we said -- we said no, we voted no. we spoke against it. but we did lead and we said we would fight the fight the next time, we had elections in november and that changed everything in wisconsin. >> alberta darling up for recall

vote in wisconsin's state senate. all eyes in the nation on that vote today, by the way. >> thank you eric and thank you gretchen. new attack on the deadliest attack of americans in afghanistan. were our navy seals lured into a trap? >> this woman survived days on berries and get this, buds. hear from her. don't get enough. so here's five bucks to help you buy v8 juice. five bucks. that's a lot of green. go to v8juice.com for coupons. you can count on us. on our car insurance. great! at progressive,

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>> kind of a bad day for the stock market. down over 600 points. in fact, let's see how the e trade baby reacted to the news do. we have that? >> 4 1/2 -- >> amazon down. >> i hear some grown-ups who

were doing that yesterday and so did you. >> at the business network, we were doing exact the same thing. >> justifiable to have a meltdown yesterday. >> today, it looks like we might open in the green right now. >> i'm watching this thing, it's up about 167 points as we speak right now so we've been watching the world markets around the world. stocks had been tanking coming back right now as we entered some global markets and entered official bear market territory after one of the worst days on wall street history since the collapse of -- actually, the worst since the collapse of the lehman brothers but the sixth worst of all time. >> asian markets briefly recouped earlier losses and european stocks opened higher today but that rally was short as investors worried about the consequences of the u.s. credit downgrade. debt crisis and mounting concerns of a global recession. many investors are looking for safer places to park their cash sending the price of gold and the swiss sunk to record levels

now. so here's one theory maybe you haven't heard. could the downgrade be the voters' fault? >> yeah. this is -- this is interesting and in fact, this fellow is going to join us from san anton antonio, his name is rick ferry, the author of a book called "the power of passive investing." he is taking blame for the s&p downgrading because nobody else will. he says mr. ferry says i made it a habit to vote only for candidates who would give me more the expense of others. when i was going to college, i voted for candidates that wanted to increase pell grants and provide cheap loans to students. sounds familiar. when i was working i voted for candidates promising tax cuts so i could take home more money. sounds familiar. when i was out of work, i voted for candidates that would provide unemployment benefits. when i retired, i voted for candidates who promised never to cut my social security and my medicare. >> the point he's trying to make it elections have consequences. you have to be very careful who

you are voting for. look, conservatives turn the house of representatives from democrat to republican and then they said no more spending there which ended up creating somewhat of a gridlock in d.c. remember, there's one side that wants to cut the spending and the other side that voted for people that look to want to do the things that you just named, steve. all the entitlements. help me have unemployment if i'm out of work. help me if i can't pay my mortgage, help me out there, too. bottom line is it's coming home to roost. >> it's emblematic on how you vote based on the changes of your life as well. to me, it's a little optimistic because it shows that you have an open mind and you might be willing to see things from different points of view depending on your personal circumstance. it's better than just always being, i think, hard line on every single issue no matter what. anyway -- >> sure. the other big story is what happened over the weekend where 30 americans killed in a chinook chopper just like that.

there's a story out that, apparently, those navy seals and others were caught in a trap by the taliban. what they did was apparently a taliban commander by the name of carrie tahir lured the united states to the scene by leaking information, yeah, at this particular location. there's going to be a big taliban commander meeting. and so the u.s. sent in the rangers and then they -- those guys got pinned down and then they sent in that chopper full of those guys and apparently, the taliban knew they were coming. there was only one way through that pass. and they had people with all sorts of rpg's and all sorts of guns, apparently was multiple strikes on the chopper. >> right. and they were thinking they were going out to help a group of pinned down army rangers. sad day. sad day. a lot of people missing their daddy right about now. >> yeah, the an emotional day for the families and friends of those 30 heroes killed. remains of the soldiers arriving at dover air force base this

morning. we just learned that admiral mike mullen will be there for the dignified transfer. >> kelly wright live for us in washington with the latest to bring us up to date. good morning to you. >> good morning to you as well. admiral mike mullen, as you said, the chairman of the joint chiefs of staff along with his wife will be present when the bodies of those u.s. troops return to dover air force base in delaware sometime today. the return of the fallen troops is being classified as a dignified transfer. and will be closed to the media. in an advisory statement to the media, the pentagon states "due to the catastrophic nature of the crash, the remains of our fallen service members will be returned to the u.s. via dover air force base in unidentified status until they can be positively identified by the armed forces affairs office at dover. because the remains are unidentified at this point, next of kin are not in a position to grant approval for media access to the dignified transfer.

therefore, in accordance with the department of defense policy, no media coverage of the arrival and transfer is permitted. families will, however, be given the opportunity to be present, rather, for the arrival. now, this is a change, of course, for the obama administration which lifted the ban in march of 2009 of being able to cover that. as long as it meets the approval of next of kin. but in this case, they decided not to do so because of those unidentified remains that will be returning home. still, leon panetta says the defense secretary says it's time to pray and mourn for those who have been lost and he will continue on, he says, with the fight to bring the al-qaida and taliban under control. back to you. >> all right, kelly. thank you very much for the live report. >> the government won't confirm those seals' identities. many of their family members have come forward. they're painting a picture of these heroes, they were brothers, fathers, sons and uncles. here are eight of the men that we know so far. one philadelphia native michael

strange, a 25-year-old petty officer whose family says he died too young. >> he served his country with pride and ohe loved his brothert he fought with, he was the one person who actually said he was a very respectful person. >> then there's chief petty officer matt mills, recently married father of three. we're told he had been in combat every single year since the war began. >> people just didn't know what to say, you know, war comes home to you when you -- when it's a neighbor. when it's a hometown boy. and here we've lost two of them on the same team so it really is -- don't know what to do. >> and in shreveport, louisiana, plans are under way to memorialize not one but two men who died in the crash. chief petty officer robert reeds and his friends lieutenant commander jonas kelsaw.

they grew up together, went to school together. they played soccer together and they became navy seals together. >> he loved philadelphia, north catholic, mayfair, and he loves all you guys and all his friends. >> tough to watch the pain that those families are now going through and the rest of the nation quite frankly when you lose that many of our military in one. one day. >> eric? >> yeah. awful. just absolutely terrible. so to the rest of your headlines. pacific gas and electric under fire for allegedly ignoring major safety warnings. whistle blowers say it contributed to this pipeline explosion in san bruno, california, last year killing eight people. pg&e workers claim they were punished for speaking up about safety concerns. some were fired and others lost pay according to lawsuits against the utility.

no comment from pg&e. steve? >> talk about an incredible story of survival. after falling 50 feet and spending three nights in an oregon forest, she was rescued by a national guard helicopter. despite having broken bones, the 28-year-old said her strong will is what kept her moving and alive. >> really felt like i just wasn't done yet, you know, and i just kept like pushing and pushing through and through all the pain, i wasn't going to just lay there. >> that's great. she had been on a camping trip with her boyfriend when she got lost and fell. >> get ready to have the time of your life. again. >> ♪ time of our lives and i owe it all to you ♪ >> remake of the original "dirty dancing" movie is apparently in the work. there's no cast yet but we know the film will be directed by the guy who choreographed "high school musical".

the 1987 original stars the late patrick swayze and, of course, jennifer gray who went on to win "dancing with the stars." didn't she? >> she did. we told you the top of the hour the woman kissing elvis in this classic picture has revealed her identity. she's 75-year-old barbara gray, a real estate manager from south carolina. there she is. here is gray today. she said she was sick of being the unknown woman so she decided to go public. >> she's still looking fantastic! at 75. beautiful woman. >> straight ahead, we have good news if you're looking for work. coming up, our weekly series showcasing five companies that want to hire people right now, get a pencil and paper. we could have some help for you. >> then the obama administration says it's ok to ignore the education rules championed by president george w. bush. so we're going to debate whether or not that's good or bad for our kids. that's coming up next. they're two of a kd.

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>> 45 minutes after the top of the hour. from crowded classrooms to shrinking budgets and unmotivated teachers, america's education system seems to be falling apart. so how the heck can we fix it? check out this guy on your screen right there. ron clark is a renowned educator who founded the ron clark academy in atlanta. it fosters an environment of academic excellence. he's also the author of the end of molasses classes. getting our kids unstuck. ron clark is our guest this morning. good to see you. the kids must see that title, too, and say i like that title. >> kids like things that are different. anything that was slow is slow as molasses and we try to make our classrooms fast and exciting. >> and you look like you're energetic when you're in the classroom. >> oh, yeah. you have to be. >> you have laid out some positive ways effective ways in which parents, teachers, etc.,

can challenge, can motive ate the kids. you say you start with problem number one. we have a massive push on end of year testing. how is that a problem? >> it's a problem because all across our country, we're telling kids you need to learn this, it might be on a test. we've narrowed the curriculum instead of having art and music and science and social studies that makes us human, we're focused on math and reading. we've narrowed the curriculum. teachers aren't allowed to teach the way they need to teach. they're being told to teach to a test. >> you say shrinking school budgets that we have talked about a lot on this show and low teacher salaries and teachers facing classrooms of 35 kids, how can that be effective? >> it's a challenge and people are overworked and stressed. they're being told you've got to prepare these kids for this test and there's so much stress. >> now, this one i love. teachers don't know how to utilize technology. what do you mean by that? >> we have so much technology. we have boards in our classroom and they're awesome.

and as i travel around the country, i see lots of teachers with this technology but they're not using it so instead of putting so much money into technology, we also need to make sure we're putting money into preparing teachers so they know how to use the technology. it's all about teacher training. >> because the kids know about technology now. and they need to be stimulated at all times so teachers can't be boring standing up at the front of the class ma. tips for parents, stay positive and calm when helping with homework and most importantly, respect the teacher, right? >> yeah, in the end of "molasses classes" it's for teachers and parents. about ways we can work together to set a positive tone. this book contains things that every teacher wants to say to every parent. how to be positive and work with your kids at home and how to help your child be successful. >> tip for teachers, form a bond with parents. set an electrifying tone in the classroom and build a bond with your students. that sounds relatively basic but i'm sure there are a lot of

teachers out there who have been doing it 20, 30 years, maybe they've lost their edge. >> yeah. in the "molasses classes" we talked a lot about making sure you have that bond or connection. it may be going to basketball games or going to do home business or looking your students in the eyes. as i travel across the country, i teach as well now. as i travel, i want to see where is the teacher looking? if she's looking in the eyes of the kids, i know she's going to create that bond. at our school, we invite thousands of educators to come to atlanta, sit in our classrooms and watch how we create that bond with their students. we've had them spend two or three days with us and take it back to teach their classes around the country. >> it sounds inspiring. we were the great teachers in our lives and don't remember the bad ones so much. >> sometimes you do, unfortunately. >> sometimes, but you definitely remember the good ones and usually made a difference in your life. ron clark, educator and author, hard title to forget. that's a good thing. good to see you. the top five companies looking to hire this week.

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>> got some quick headlines for you. airlines are rolling back the fare hikes that they added during that shutdown of the f.a.a. you'll still essentially pay the same price since those previously suspended federal taxes are back again. since july 22nd, the f.a.a. shutdown prompted some federal taxes to be removed from the cost of airline tickets. however, most major u.s. airlines opted to raise fares instead of passing that tax holiday on to consumers. eric, over to you. >> all right, thank you, steven.

by the way, marckets looking about 100 points higher. market scares and downgrading of credit, there's many questions concerning the economy. what if you can't wait? you need a job and need one right now. cheryl joins us now from the fox business network with the top five companies hiring this week. >> i'll tell you what, you know this. we've had 75% of companies now come out of the s&p 500 with earnings and they've all beat expectations. a lot of companies are doing well and a lot of them are hiring. snap on tools, believe it or not, are you a mechanic? >> not much. i know of them. they make really good calendars. >> there's a lot of mechanics in the world that like snap on tools. if you want to open up a franchise business, they will give you financing. that's the big deal here because to get the loans to start the business is the tough part. $32,000 to $97,000 to the range for salary. but there's a lot of opportunity there if you want to be a business owner. >> ok. go ahead. wells fargo. >> wells fargo.

you know this one, fourth largest bank in the country, obviously. 11th largest company in the united states. they're still going through that whacovia merger but they're definitely looking to hire. they have jobs in pennsylvania, a lot in california. they're based in san francisco. they have operations in texas and florida looking for folks and they're really about diversity. they're very big on diversity. >> liberty mutual. >> liberty mutual. ok, auto, life, disability, every insurance policy, everything you can think to insure, they do it. they're one of the big four insurance companies. salary range pretty large here $107,000 to $140,000 and they're looking for sales agents auto. auto defense contractor, general dynamics. >> talk about this one before, they still need people especially if you have i.t. skills, they made this big contract from the u.s. navy, they're building mobile and sea combat systems. they've got $744 million government contract.

they've still got to fill that order and they're still looking for people. they bought 50 companies since 1997. 50. >> that's big government contracts help out quite a bit. last one, bed, bath & beyond, that's rumored could be a bankruptcy thing going but no, they're ok? >> no, bed, bath & beyond is more than ok right now. i'm sure your wife has dragged you into this store over and over. just admit it. the salary range is $62,000 to $77,000 were that's pretty good. they're very good into customer service. they own bye-bye baby. that's been one of their big surprises and the two gentlemen that started this in new jersey, still running the company. 80 years old. the jersey guys, buddy. >> you can catch cheryl every day on the fox business network. coming up, the field of g.o.p. candidates about to get bigger with this addition, the size as big as texas and the government agency introducing the department of innovation but

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>> gretchen: top of the morning. tuesday, august 9. i'm gretchen carlson. hope you're going to have a great day. a fox news alert, world markets following wall street in a free fall. now it's wall street's turn. cross your fingers. your investments on the line a little more than an hour from now. we're live from the floor of the stock exchange. maybe it will be a better day. >> steve: the stimulus, auto bailouts and unemployment, employment all tanking, all on his watch. is it time for treasury secretary tim geithner to resign and say good-bye? we're going to report, you decide. laura ingraham reports in three minutes. >> eric: tim geithner kiss? >> steve: i was blowing it to the people out there. >> eric: london is burning and moments ago, these riots turned deadly. one dead, hundreds arrested and the prime minister speaking out. "fox & friends" starts right now.

>> i'm ed koch and this is "fox & friends." >> gretchen: thank you, mr. mayor. let's get right to your headlines this morning. we have laura ingraham right around the corner and her commentary on what's going on on wall street and the president. we are getting reports that a 26-year-old man has become the first person to die from those violent riots going on in london. he was shot in a car. british prime minister david cameron called on parliament to get back from vacation to figure out what to do next. he also vowed to do whatever it takes to restore order. >> i have this very clear message to those people who are responsible for this wrongdoing and criminality. you will feel the full force of the law and if you are old enough to commit these crimes, you are old enough to face the punishment. >> gretchen: there will be about 16,000 police on london streets

tonight, triple the usual number. but cameron has not called on the military for help. riots have spread to other british cities. so far 450 people have been arrested. the violence started a few days ago after a father of four was shot by a police in a racially charged london suburb. a radical anti-american shiite issuing a serious threat against u.s. troops. cleric is telling american troops to get out of iraq and go back to their own families or they will become the target of new attacks. the rare statement just appeared on his web site. he wants america to know the roughly 46,000 u.s. troops are not welcome in iraq. you're looking at eight of the 30 american heros who died in saturday's deadly helicopter attack in afghanistan. their bodies expected to arrive today at dover air force base in delaware. admiral mike mullen will be there for the dignified transfer, which is closed to the

media. 22 of those victims were navy seals. three were air force special operations and five were army helicopter crew members. the 2012 republican presidential field may be getting a texas-sized boost. we're learning texas governor rick perry will travel to key primary states, new hampshire and south carolina this weekend, the same day his potential gop rivals battle it out in the iowa straw poll. reports say that perry has also been hiring staff and contacting donors. an announcement could come next week in houston. elections in wisconsin putting the careers of six state senators in control of finance on the line there. they want to recall six senators after they stripped unions of collective bargaining. >> we need a state senator who represents the people of this district, who will fight for education, fight for families, fight for the growth of our

state. >> i'm being recalled for doing what i was elected to do. i had a big job, to balance a $3.6 billion deficit without raising taxes. we had to make cuts, but we did it without having major layoffs. >> gretchen: democrats need to win three of the senate seats to take control. but some democrats are going to be then up for those recall votes coming up next tuesday. interesting situation going on in wisconsin. >> steve: now all eyes on laura ingraham. she joins us live. of course, she's best selling author of the new hit called "of thee i zing." good morning to you. >> how, how are you? >> steve: great. not looking at our 401(k)s are about a 2 1/2 1 k. >> what 401(k). >> steve: exactly. what did you make of the president yesterday? he said, i want everybody to listen. i've got important comments at 1:00 o'clock. 52 minutes later, he finally showed up. did he say anything? did he have a plan? i know the markets tanked

afterwards. >> i don't get about this is the president keeps feeling the need to come out and speak to the nation and i'm in my radio studio and i think, wow, maybe there is a change in policy, maybe he's reconsidered begging tim geithner to stay, maybe something earth shattering will happening that will turn the tide on this market. i told my guy, watch where the market is going with what he said. when he started talking about, of course, more balanced approach to debt reduction, meaning tax increase, of course, the plummeting really took hold. i'm urging the president -- i'm begging the president at this point, stay off television today. we really need a recovery. stay off tv. that's all i'm saying. >> eric: you know, laura, very, very big point we've been talking about this morning is if the u.s. debt is downgraded, there are several handful of states that believe it's ten or 12 states who have triple a credit ratings right now. eventually the word is those states are reliant on the feds for 20, 25% of their budget,

won't they have to be downgraded and won't that affect literally millions of americans? >> this is a con stagen that will spread if this disease is not treated and if we're not cured of too much spending. and we've seen this conversation in our country about states versus federal power. state power, let's have the state governments have more control. there is this ideological battle out there about that simple question. who should really have say in issues like education and regulation, and employment, and increasingly, the federal government has taken over roles that traditionally it wouldn't have ventured into. so now we're going to be all paying the piper here and it's going to be really ugly unless the president gets a light bulb and sees what he's done hasn't worked. and he might be the nicest guy ever, might be fun to have a beer with and fun to golf with, but one thing is clear, he doesn't know what he's doing. i've been saying this for a long

time. i really believe he's completely out of his depth in handling this problem. he's never run a business. he's never run a company. he's never been a chief executive. his first chief executive position was running the biggest government and the biggest military and the biggest economy in the world. so far, the grades are in. it's a disaster. >> gretchen: one thing he is really good at is fundraising and campaigning. i mean, let's face it, he ran a brilliant campaign when he was elected to become president and now he continues to be a great fund-raiser. he'll be the first billion dollars president and last night after the dow fell more than 600 points and we were facing this downgrade, he had two fund-raisers in washington. i don't know if you're a pr specialist, but would you have recommended that for the president? >> optics are terrible. and they have been for some time. and gretchen, you hit the nail on the head there. he's really good at that. and remember when he was running the campaign in 2008, we were talking about what qualified him to be president? when we merely raised that question, a lot of people who were supporting him said, oh,

that's outrageous! look at the campaign he's running! and our point was that look, running a campaign is not running the country. he wants to represent everybody and what's good for the country might not be what's good for the fat cat donors shelling out 15,000 plus a plate to hear him speak. i mean, i was talking to ceo's in minnesota last week about this and i said, if your company was in this much trouble what, would it look like it your board of directors if you said, i'm going off and doing some other things right now, but i'll get back to you? >> eric: you talk about the millionaires and billionaires who fly in their corporate jets to go on these fund-raisers, right? >> of course, the people who are demonized, but then their wallets and money, that cash is good. it's good for the campaign coffers. it looks unserious to the people in this country who are really, really anxiety ridden and frightened right now.

it looks unserious. >> steve: and in the beginning of this administration, it was curious that the president nominated a guy for treasury secretary who could not or simply forgot to pay his taxes, tim geithner, for a couple of years. now there are a number of people, and we're going to play a sound bite or two for you from some republicans who say it's time for tim to go. >> having had timothy geithner sit before us and testify in the small business committee and i had an opportunity to query him, when you open that refrigerator door, the lights don't come on. >> i just think he's lost the confidence of the financial world in this country and i think that the president lost the confidence of the voters, but we can't get rid of barak obama, who is in a constant hunger for pageantry, speeches, fund-raisers. he's waking up this morning from a fund-raiser somewhere and the rest of the country is looking for leadership. so i think that we need a change

at the secretary of treasury. >> steve: what do you think? time for geithner to go? >> i kind of was like that a year and a half ago, calling for geithner to go. i've known him since i was 20 years. he went to college with me. and so old conversation here. >> steve: a reunion. >> tim geithner is, again, not performing. at some point when you don't perform, you're supposed to be judged and then gone. and if it's not just he's staying, obama is apparently begging him to stay. >> steve: he's got tenure! >> geithner wants to leave. he's wanted to leave for some time. and what we found out is apparently geithner is the only guy obama trusts to explain the economy to him. i don't think obama really understands ma crow or micro economics. i don't think he too -- i don't know if he took in college. i don't know. but i do know geithner is the go-to guy. that's all you need to know about how serious this president

is about fixing this economy. >> gretchen: it's funny how times changes. remember when geithner came in, republicans and democrats said he was the only guy who could save america. >> not me. >> gretchen: a lot of republicans said he was the only guy. now many calling for him to not be there anymore. have a fantastic rest of the week and we'll see you next week. >> you, too. take care. >> steve: keep your money in the mattress. straight ahead, new information in the search for america's most wanted fugitive. but the latest results, not going to make the f.b.i. agents very happy. not what they planned. >> eric: who is to blame for the u.s. credit downgrade? those who spent or those who fought too hard to save? that debate is next. the dow up 130 right now, looking at a positive opening.

>> gretchen: welcome back. the downgrade created a domino effect in the world financial markets monday. but before the markets took a tumble, both political parties in washington were already pointing the finger, blaming each other for the s & p downgrade. so who do you think is to blame? join meg now to debate are two congressmen and members of the house budget committee. paul conko and frank ginta.

good morning to you. >> great to be with you. >> gretchen: congressman tonka, are you going to say the same thing that david axelrod and other democrats said on the sunday talk shows, that it was better known as a tea party downgrade? >> look, i think a blame game doesn't help anyone here right now. i think what the country needs is certainty. i think the certainty that we can provide comes with a response that is sound, that speaks to a jobs crisis, that is looping large and heavy for a long time as opposed to a manufactured crisis that was an overnight crisis on the default that really didn't get to the jobs creation issue that i think will provide certainty in the market and provide protection for all of the income strata in this country, including the middle class. >> gretchen: so you're not blaming the tea party for the downgrade? >> i think that some of the extreme thinking of cuts for the sake of cutting was not helpful.

we don't need a cleaver approach. we need a scalpel where we cut where we can and invest where we must. >> gretchen: let's listen to david axelrod. i want to get congressman ginta's response. >> the fact is this is essentially a tea that's right downgrade. the tea party brought us to the brink of a default. that clearly is on the backs of those who were willing to see the country default, those very strident voices in the tea party. >> gretchen: congressman, was david axelrod talking about the tea party's entire motivation, which is to cut spending, that that caused the downgrade, or the tea party's short of gridlock in government, at least some people see it that way? >> david's job is to politicize a very serious and important debate. this is not a manufactured crisis. $14.3 trillion in debt is real. the tea party, like many americans, want the truth. they deserve to know the truth.

they want facts. they want us to cut the spending that president obama started 2 1/2 years ago. our spending has gone up 86% in 2 1/2 years. that's real. that's got to be curbed. we've got to change the trajectory of spending. that means entitlement reform, that means tax reform. and that means getting serious about getting to a balanced budget. >> gretchen: congressman tonko, do you hold out much hope for this super committee about to be announced next week? do you think they can actually come to an agreement for $1.5 trillion in cuts? >> i think we're absolutely charged with that responsibility. we have to again provide for that certainty. i'm concerned because we need to go forward and invest in job creation. i am the first to suggest we can belt tighten where it's possible. we also need to invest. it has to be i think two trains coming down the track. we do this long-term plan to resolve our deficit situation, but we must invest in infrastructure, innovation, and education. we need to create those jobs out there.

>> gretchen: congressman ginta we did that with the stimulus package, which most people thought didn't really work. i'm wondering if you do it in that way, is it just a wash as far as getting rid of a lot? >> there are those who congress who feel we didn't have enough stimulus, enough $800 billion government spending. that public policy did not work. most americans believe it didn't work. that's what contributed to the increase in spending. we've got to reform our spending, control our spending, and we have to have a balanced budget amendment moving forward. that's the only way to control republicans and democrats in washington. washington is the problem. it doesn't create jobs. the job sector, the job creators are the individuals that i put my faith into creating jobs. but we've got to give them certainty. you do that by reforming entitlements, the tax code and getting serious about debt and deficit reduction. >> gretchen: different ideology. they're all going to come together at the table for this super committee. we'll see how that all pans out.

congressmen thank you for your time. >> thank you. >> thank you. >> gretchen: forget who is to blame in washington. our next guest says as a voter, he'll take all of the responsibility for america's credit downgrade. why you should, too, he says. that's coming up next. and mexico says forget the american dream. mexicans no longer have any desire to cross into the united states of america. wait until you hear why. [ female announcer ] so you think your kids are getting enough vegetables?

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>> quick headlines. mexican government says the number of mexicans fleeing their own country for the u.s. and elsewhere has dropped to less than 1% of the population. that's down 83% from the height of the immigration boom back in 2006 and 2007. mexico says it's because of the cost of migrating and border crossing dangers. not the lagging u.s. economy. and this logo right here raising some questions. the government sponsored smithsonian institute created a blog called department of innovation. right? it was inspired by president obama's so-called social security pu -- sputnick moment. the interlocking gears in the logo, they can't possibly move in any direction. they are just stuck.

it is a sign eric bolling of gridlock. >> eric: it is. it's actually a perfect sign, appropriately so. all right. just as you heard last segment, everyone in washington is passing the buck when it comes to the credit downgrade. yesterday here is president obama blaming politics for the decision by the s & p to downgrade the u.s. credit rating. >> the united states received a downgrade by one of the credit rating agencies. not so much because they doubt our ability to pay our debt if we make good decisions, but because after witnessing a month of wrangling over raising the debt ceiling, they doubted our political system's ability to act. >> eric: get this, our next guest says he's taking credit for the downgrade himself. why? rick ferry is a financial advisor and author of the book "the power of passive investing" with us from san antonio to explain.

your fault? the downgrade is your fault? >> it is my fault and it is your fault and it is all the viewers' fault and it is the voters' fault. we're the one who put these people in power. besides that, we're the one who got the benefit from it. we're the ones who spent the $15 trillion. it went to us. it didn't just disappear. it went to us. we spent it and we did nothing about it. it is our fault that this was occurring. >> eric: wait a minute, mister. i didn't spend that money. i had no part in spending it. >> yes, you did. >> eric: i didn't want the money being spent. i didn't want 43% of american households not to pay a dime in tax. how are you blaming me? >> because didn't you take that nice deduction on your home equity loan to take a vacation to europe or wherever you went? didn't you take a deduction -- you're not over the age of 65, but all of the deductions, all of the loopholes that we're all blaming corporations for,

they're not paying high taxes. the fact is individuals get lots of loopholes, too. that $15 trillion was spent given -- given to us and spent by us -- >> eric: i'm not going to take the blame. i'm not going to take the blame. >> you're just like the politician in washington. >> eric: mr. obama blames everyone for everything. he blames the media for the lack of compromise in washington. he blames technology for the struggling economy. he blames atm for 14 million people out of work. i'm sake of it. i'm not taking the blame anymore. i think you're wrong. what do you think of that? >> you can have your opinion. that's what this country is all about. i know that i got certain tax breaks on my taxes and you got certain tax breaks that allowed us to have a higher standard of living than what we would have ordinarily had if the budget deficit was nonexistent. if it was zero. we all benefited. we all have to come to the table and we all have to sacrifice a

little bit one way or the other and -- >> eric: you're wrong. you may hate me for this and never come on my shows, but you're wrong. when you do that, when you put the country into $14 trillion in debt, you print to bail us out, you drive the price of everything up! gasoline is almost 4 bucks a gallon because of this b.s. going on in dc! i don't agree with you. >> did you cash your check that you got as a stimulus a few years ago? >> eric: no! i didn't get one. >> you're the only person who got one. >> eric: i'm gog have to leave it there -- going to have to leave it there. i like the topic. i like going head to head with you. maybe we'll do this again sometime, my friend. >> that will be great. >> eric: wall street getting ready to wake up and face some ugly news from global markets overnight. your investments on the line again. we're live from the floor of the new york stock exchange and leading by example, beth stern ready to adopt an animal live

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more passion for the one ya love. more fun with your family and friends. it could be a treatable condition called low testosterone or low t. come on, stop living in the shadows. you've got a life to live. [ male announcer ] so don't blame it on aging. talk to your doctor and go to isitlowt.com to find out more. >> steve: a fox news alert. you're looking live at a burned out london right now where crews have been putting outraging fires started by rioters overnight. earlier this morning, british prime minister david cameron called parliament to return from vacation to figure out what to do next. look at these pictures. cameron also vowing to do whatever it takes to restore order. >> i have this very clear message for those people who are responsible for this wrongdoing and criminality: you will feel

the full force of the law. and if you are old enough to commit these crimes, you are old enough to face the punishment. >> steve: and we are learning this morning there has been a person killed in the riots, as we look at video from the u.k. >> gretchen: f.b.i. joining the search for a three-year-old in missouri. she was last seen in front of her home saturday riding her bike. her father making a desperate plea. >> people make mistakes. i don't care where you drop her off at. make sure somebody can get ahold of her and bring her home. >> gretchen: $45,000 reward for her safe return. if you have any information, please call police. >> eric: dominic strauss-kahn facing a new lawsuit. the maid who accused him of sexual assault now filing a

civil lawsuit. she's seeking unspecified damage for physical and mental harm, as well as damage to her reputation. meanwhile, the criminal case is still pending even though the maid's credibility has been called into question. his next court date is august 23. steve? >> steve: meanwhile, the dp cooper mystery continues. there is no match between new suspect's dna and a neck tie left on the airplane that was hijacked back in 1971. the f.b.i. says this does not rule out the suspect who has apparently been dead for a couple of years. recently a woman came forward claiming her uncle was the hijacker. it's believed he is the f.b.i.'s new suspect. i bet that's a picture of him. >> gretchen: at 26, raymond johnson learned he had breast cancer. he didn't have insurance and wasn't able to pay for chemotherapy, so he applied for medicaid. but he was told he wasn't eligible because men are not covered for breast cancer treatment.

earlier on "fox & friends," johnson said he's trying to stay optimistic. >> i'm doing as much as i can and i'm letting the bills pile up, but basically i know that god is working with me with this. >> gretchen: the centers for medicare and medicaid released this statement saying, quote, we are working with the cdc in south carolina to see what options may exist to address this situation. johnson is getting some assistance from several church organizations, but it's $10,000 a treatment. >> steve: oh, boy. meanwhile, let's look at the weather on this tuesday. we've got some rain showers along coastal florida. at this hour, it's still there. we've also had action through portions of the lower tennessee and mississippi valley. also portions of the ozarks, up through the great lake states and ohio valley, a shower or two on this tuesday. meanwhile, the current temperatures as you head out,

already warming up and combine the humidity, it's a little uncomfortable. 75 right now here in new york city. we've got 77 in raleigh. already 80s along the gulf coast through portions of texas. dallas-fort worth, going to hit 108 once again today as they march on toward that big record of most days above 100. it will be close to that century mark in raleigh-durham of 96 there. 90 in tampa. up north, caribou, maine, 76. 71 in minneapolis. in cleveland, ohio today, they should top out at 81 degrees. meanwhile, out west in california where it is 5:35 in l.a., 68 the daytime high. it's already warming up here in new york city and that's why we have dispatched eric bolling outside. >> eric: that's right. these are shelter dogs up for adoption and beth stern, spokesperson for the north shore animal league of america is here

to tell us how you can save a life and get a best friend. >> we launched our national psa reminding people to go to their local shelters, adopt. don't buy from a pet store. look at me. i'm getting pulled over by this beautiful -- >> eric: rocksy? >> he's a coon hound mix. four came in. they're seven months old. they're all litter mates and they are definitely family dogs. i have to say, if you want to adopt these dog, you have to have a big yard 'cause they have a ton of energy. they're great with kids. they're great family dogs. they like to howl. >> eric: i've rescued dogs. we have freedom, the best dog i've ever had in my life. fantastic. it's important to know that the dog you're getting fits your family. right? >> right. what we have are adoption

counselors on hand to discuss your lifestyle and to find the perfect match for you. again, these guys need a big, big yard. i have really exciting news. ike going to north shore this afternoon and adopting my third cat. >> eric: are they related? >> ier, they are liting mates. >> eric: do you keep -- do you have to keep them together? >> not at all. it would be lovely if someone can open their home to three, but they're perfectly fine to go home. >> eric: i adopted freedom. he was one of three brothers and i remember, he was in the cage, the best dog i've ever had. i wish i had stayed in touch with the brothers. >> right. >> eric: can you do that, if they get separated, account owners stay in touch? >> the only way i can see that happen is if they all came today and exchanged numbers. >> eric: is there a screening process for owners? >> absolutely. it's very, very diligent. yes, the owners have to have the lifestyle, they have to have the means and a great home for these dogs to go home with them.

>> eric: adorable dogs. thank you so much. >> thank you. >> eric: north shore animal league. >> log on to animalleague.org or come visit us in port washington. >> eric: a great work. >> thank you. >> eric: back in to you guys. >> gretchen: thanks a lot. say hi to beth for us. the dogs are so cute. >> steve: there is a hydrant right over on the corner. >> eric: they already got my leg. i'm kidding. >> gretchen: you saw how investors reacted to president obama's speech yesterday. the markets tanked. is that how we can expect voters to react in 2012? not sure. but peter johnson, jr. is next with his analysis. >> steve: then a game changer. now you can run the boston marathon without ever actually going to boston. how is that going to work? stick around. bacon?! gotta get that bacon!

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>> steve: fox news alert. we know you want to know what's going on on wall street. there is a live picture where we

are just about 45 minutes away from the opening bell. nicole from fox business is live on the floor of the fox exchange. how does it look for today? 'cause yesterday we want to forget about. >> actually i'm able to smile at the moment just at this moment, steve, because we do have u.s. futures pointing for the dow to a higher open this morning, up about 150 points. but you know just like all of our viewers know, this is a minute to minute market. yesterday we saw huge selling going into the closing bell, everything was for sale. on the s & p 500, every single one of those 500 names finished lower. you don't see that too often. and the selling has just been so random. even the ceo of the new york stock exchange, i was katying with him yesterday, he said, it does feel a bit arbitrary. a lot of traders were saying it feels like reckless selling. but it's a psychological market. the fundamentals are fundamentals. we made it through the downgrade and fannie mae and freddie mac

downgrade and we're seeing the action getting see saw action this morning. gold at a record. so that's something to keep an eye on. and i have to tell you that we did have jpmorgan raising their target to $2,500 for the end of the year for gold. right now gold is approaching 1750. as far as names to watch, certainly keep an eye on bank of america. yesterday it got creamed. down 20% in one trading day! today bank of america is looking to the upside. apple looking higher. apple still a winner. but i got to tell you, a lot of the names that got crushed yesterday, we'll be watching them today. but the commodities and the financials, those are some names that will be in focus today, steve. >> steve: all right, live on the floor of the new york stock exchange. buckle your seatbelt, it could be a bumpy ride. >> i'm ready. my seatbelt is very tight. >> steve: good to know. 17 minutes before the top of the hour. the president says pay no attention to that darn s & p. >> markets will rise and fall,

but this is the united states of america. no matter what some agency may say, we've always been and always will be a triple a country. >> steve: are the american people themselves on the verge of giving their own downgrade to the president? joining us is fox news legal analyst, peter johnson, jr. >> how are you? i commuted this morning with a bunch of people that have jobs, brokers, traders, people that process stock and bond transactions. i heard one woman say to me this morning, why did he even get on the television? it's all about hope and confidence. and unfortunately, fear and anxiety at this point. a lot of americans with jobs and the 14 million americans that don't have jobs. another 8 million americans who are working part-time 'cause they can't find a full-time job are questioning whether they should have hope and confidence in this president as we go forward in this economic crisis. so what we have is a triple a downgrade, 2 1/2 trillion dollars lost in assets

yesterday, goldman sachs one in three chance of a recession, and some remarks by our president that basically say the solution is tax the rich, we'll give you more unemployment benefits. and i'm going to double down on geithner in spite of three years of losses here in the united states. and so the logical question is, will there be a political course correction in the same way there is a market course correction this year? does it happen next year? a lot of americans are looking to that and saying, what are we doing? where are we going? who can we trust? what do we believe in? what's the message going forward? i was sitting this with people yesterday and i said, i'm hoping to hear something from the president. i want to hear something that will lift our spirits, that will say yes, we are a great country. this is why. >> steve: we're going to get through this. >> yes. but it came back to what we said yesterday. the american people made that

statement. standard and poors said we don't have confidence in american credit. but the american people said yeah, and a flight to safety, i'm going to go back to u.s. treasuries. the question i ask today, steve, and it's a question a lot of people may be thinking: where was the president with s & p? why didn't he bring the president of s & p into the oval office and say, what are you doing? what are you saying? i'll show you the numbers. i'll show you our stewardship. yes, we bicker in this country. we dispute each other, but this is the greatest country in the world. so a lot of people are saying, where was the leadership? where was the communication? where was the moral persuasion? why couldn't the president convince s & p to do what americans are doing and invest in our country? >> steve: that is such a good observation because we just heard from london, david cameron, the prime minister say, look, we've got this looting and this violence here.

everybody back. come on, government, we're going to come back. no plan from the president. no direction yesterday. he's going to make some recommendations going down the pike. >> we need them fast. >> steve: we needed them yesterday. peter johnson, jr., great observation. >> keep hope alive. >> steve: thank you very much. meanwhile, straight ahead, the democrats have coined a new term. the tea party downgrade. how does the tea party feel about taking the blame? senator mike lee responds next. he's part of the tea party caucus in the senate. and will they hold strong against not raising taxes? coming up in 12 minute, alisyn camerota will take the steering wheel here on the fox news channel. what's on your road trip? >> let me tell you, steve, what will happen today when the market opens? why did the stock market tank 400 more points after the president spoke? jerry willis, charlie and steven moore have theories that they will share. those three fugitive siblings are still on the run this morning. we have video of their violent car chase and police shootout.

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>> gretchen: couple headlines. the more than 100-mile journey to florida over now for diana nyad. the 61-year-old swimmer was trying to become the first person to cross the florida straights without a shark cage. but she had to stop after 29 hours due to shoulder pain, asthma and high winds. and ever wanted to run the boston marathon? you'll soon get your chance. as long as you have a treadmill and tv, a boston company called outside interactive developed a game that let's you run the entire boston course in your house. shorter courses also available. those would be for me.

>> eric: the s & p downgrades the u.s. credit rating and democrats wasted no time pointing the finger squarely at the tea party. >> the fact of the matter is that this is essentially a tea party downgrade. the tea party brought us to the brink of a default. >> that clearly is on the backs of those who were willing to see the country default. >> i believe this is without question, the tea party downgrade. this is the tea party downgrade because a minority of people in the house of representatives countered even the will of many republicans in the united states senate. >> gretchen: senator mike lee of the house tea party caucus is here. i know congress is off on vacation now, but no doubt you heard those remarks as they were happening over the sunday talk shows. what's your initial reaction to that? >> well, blaming the tea party for this downgrade is a little like blaming paul revere for the

fact that the british were coming. look, we have a message from the people, which is that the american voter is of the opinion that the federal government has become too big and too expensive. we've got to rein that in. so how you can say that that is somehow connected to the downgrade is absurd. it's beyond my ability to understand. >> eric: but senator, do you blame the left, 'cause you knew they were going to come out right away, or do you blame the main stream media that let them utter that stuff and not calling them out on it? clearly the tea party is for smaller government, reducing taxes, not the things that are causing the downgrade. >> yeah. i mean, it is problematic when certain people within the news media will perpetuate an idea or allow it to be perpetuated without any substance. the american people understand one thing, that congress has to get its act in gear. as i explained in my new book,

it's not going to happen until we permanently structurally, constitutionally structure congress' spending power. >> gretchen: one of the things the democrats were pointing to to use was that in the s & p downgrade report, it said that the political discourse on capitol hill is what caused the downgrade. do you take any responsibility for that as a tea party member, for any of the political discourse that they might have been alluding to? >> no. i think the reference to the political discourse and the downgrade in general had far more to do with the fact that none of us at the end of the day resulted in legislation that would change the way congress spends money. if you read the early warnings issued by the credit rating agencies, and if you read the memo talking about the downgrade, it really had far more to do with the fact that we didn't change the way we spend money. that was the problem. and that didn't change with this legislation. we instead increased the debt limit by a record breaking sum

approaching 2 1/2 trillion dollars without really changing the way washington operates. >> eric: senator, yesterday the whole world was waiting for mr. obama to say something to stop the economic slide going on. he referenced raising taxes on the wealthy. eric cantor urges them to resist any tax hikes. he said, quote, over the next several months, there will be tremendous pressure on congress to prove that the s & p's analysis of the inability of the political parties to bridge our differences is wrong. also he said in short, there will be pressure to compromise on tax increases. we will be told that there is no other way forward. i respectfully disagree. i assume, sir, being part of the tea party caucus, you respectfully agree with mr. cantor? >> yes. he's absolutely right on that. the answer to this isn't raising taxes because at the end of the day, what we have is not a revenue problem. it's a spending problem. now, if we want to enhance our revenue stream by adopting tax

reform measures so as to enable us to broaden the base and lower rates, that's one thing. i think we could do that. that's probably not a bad idea. but there is no reason for us to raise tax rates. >> gretchen: so you're saying that in a super committee, they might take up tax reform as opposed to tax hikes? >> well, they might also take up tax hikes, but i don't have any knowledge or any control over what they propose at the end of the day. what i do have control over is my vote and i can tell you if we're looking at tax rate hikes, i'll be voting no. >> gretchen: well said. senator, always great to talk to you. thanks so much. >> thank you. >> eric: guys, "fox & friends," more of that in two minutes. heard this one? listen to this. three out of four americans don't get enough vegetables. so here's five bucks to help you buy v8 juice. five bucks. that's a lot of green. go to v8juice.com for coupons. you can count on us.

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